NORTHERN TERRITORY OF AUSTRALIA
ELECTRICITY RETAIL SUPPLY CODE
3 August 2011
As varied xx December 2012
Northern Territory of Australia
Electricity Retail Supply Code
TABLE OF CONTENTS
1Introduction
2Adding to or Amending this Code
3Credit Support Requirements
4Network Access
5Metrology
6Market Data
7Business-to-business arrangements
8Customer Transfers
9Retailer of Last Resort
10Dispute Procedures
ANNEXURE 1 - REQUEST FOR STANDING DATA FORM
ANNEXURE 2 - REQUEST FOR HISTORICAL CONSUMPTION DATA FORM
ANNEXURE 3 - CUSTOMER TRANSFER REQUEST FORM
ANNEXURE 4 - STANDING DATA AND HISTORICAL CONSUMPTION DATA
Appendix A – Credit Support Guidelines and Methodology
Schedule 1 – Definitions
Northern Territory of Australia
Electricity Retail Supply Code
1Introduction
1.1Authority
1.1.1This Code is made by the Commission under section 24 of the Act.
1.1.2The Commission is authorised to make a code relating to retail supply in the electricity supply industry under section 24 of the Actand regulation 2A of the Utilities Commission Regulations.
1.2Scope
1.2.1Without limiting clause 1.1.2, the Code may deal with any one or more of the following:
(a)transfer of customers between retailers;
(b)credit support arrangements;
(c)billing;
(d)metrology;
(e)service order arrangements;
(f)Retailer of Last Resortarrangements; and
(g)dispute resolution.
1.2.2In making this Code, the Commission has:
(a)sought to promote and achieve the object of the Act;
(b)sought to promote and achieve the objects of the ERA;and
(c)had regard to the matters listed in section 6(2) of the Act.
1.3Date of commencement
1.3.1This Code takes effect on and from the Commencement Date.
1.4Interpretation
1.4.1Unless the contrary intention is apparent:
(a)the Interpretation Act applies to the interpretation of this Code;
(b)a reference in this Code to a document or a provision of a document includes an amendment or supplement to, or replacement or novation of, the document or provision;
(c)a reference in this Code to a person includes the person’s executors, administrators, successors, substitutes and permitted assigns;
(d)words appearing in bold and italics like ‘this’ are defined in Schedule 1 of this Code;.
(e)a reference to a clause, Annexure, Appendix, Schedule or table is a reference to a clause, Annexure, Appendix, Schedule or table in this Code; and
(f)without limiting clause 1.4.1 (a):
(i)the word “may” in conferring a power will be interpreted to imply that a power may be exercised or not, at discretion; and
(i)(ii)the word ‘must’ in conferring a function will be interpreted to mean that the function so conferred must be performed.
1.5Application
1.5.1This Code applies to:
(a)a network provider;
(b)a retailer;
(c)the system controller;
(d)a generator; and
(e)theCommission.
1.6Objectives
1.6.1The objective of this Code is to facilitate retail supply activities which will result from the introduction of 'Full Retail Contestability' in the Northern Territory by establishing (amongst other things):
(a)the arrangements for transferring customers between retailers;
(b)the arrangements relating to credit support requirements and billing between the network providers, generators and retailers;
(c)the arrangements for metrology between retailers and network providers;
(d)Retailer of Last Resort arrangements; and
(e)a dispute resolution process for this Code.
1.6.2This Code acknowledges that other laws and codes applying in the Northern Territorywill also govern the rights and obligations of the partieslisted in clause 1.5.1 above. The ERA and the ENTPA Act are examples of other applicable laws and codes.
1.6.21.6.3Nothing in this Code will derogate from any obligation imposed upon the parties listed in clause 1.5.1 under an applicable regulatory instrument.
1.7Guidelines
1.7.1The Commission may publish guidelines relating to (amongst other things) the application or interpretation of matters arising under this Code including but not limited to:
a)the administrative procedures and arrangements that the Commission intends to adopt when administering the Code; and/or
b)the Commission’s interpretation of any clauses or terms used in this Code.
1.7.2In publishing guidelines under clause 1.7.1, the Commission must:
a)give notice to all electricity entities to which this Code applies; and
b)publish the guideline on the Commission’s website.
1.7.3A guideline takes effect from the date of its publication or from such later date as the Commission specifies in the guideline.
2Adding to or Amending this Code
2.1Variation or revocation by the Commission under the Act
2.1.1The Commission may at any time vary or revoke this Code in accordance with section 24 of the Act.
2.2Application by an electricity entity for variation or revocation
2.2.1An electricity entitymay request the Commissionto vary or revoke any part of this Code.
2.2.2Unless the Commission considers that the request has been made on trivial or vexatious grounds (in which case the Commission may immediately reject the request) an application to vary or revoke any part of this Code will be dealt with by the Commission in accordance with this clause 2.
2.3Matters to which the Commission will have regard to in making a decision
2.3.1In deciding whether to vary or revoke this Code (or any part of this Code) under clause 2.1 and 2.2 above, or impose any additional or varied obligations on an electricity entity, the Commission will have regard to:
(a)the objectives of this Code, (as set out in clause 1.61.6); and
(b)the matters listed in section 6(2) of the Act.
3Credit Support Requirements
3.1Credit support requirements between network providers and retailers
3.1.1A network provider may require a retailer to provide credit support up to the Required Network Credit Support Amount.
3.1.2The Required Network Credit Support Amount must be determined by the network provider in accordance with this Code and the ‘Credit Support Guidelines and Methodology’ outlined in Appendix A.
3.1.3A network provider must include in a request to a retailer for credit support, a statement setting out the basis upon which it has determined the Required Network Credit Support Amount.
3.2Credit support requirements between generators and retailers
3.2.1A generator may require a retailer to provide credit support up to the Required Generation Credit Support Amount.
3.2.2The Required Generation Credit Support Amountmust be determined by a generator in accordance with the following requirements:
(a)If the retailer or its parent company has an acceptable credit rating or is a fully owned subsidiary of the Australian Federal Government or an Australian State or Territory Government, the Required Generation Credit Support Amount is NIL.
(b)If the retailer is unable to satisfactorily demonstrate to the generator that it meets the credit rating requirements set out in clause 3.2.2(a), the Required Generation Credit Support Amount shall be the greater of:
(i)2 timesa multipleof the retailer’sreasonable forecast of its highest generation servicesbill over the following 12 months(which forecast must be updated half yearly) the amount of which shall be reduced by the percentage reduction figure that corresponds with the retailer’s credit rating as specified in guidelines; or
(ii)2 timesa multiple of the generator’srecord of the highest generation servicesbill issued to the retailerby the generatorover the previous 12 months(which amount will be updated half yearly) the amount of which shall be reduced by the percentage reduction figure that corresponds with the retailer’s credit rating as specified in guidelines.,
provided that the time periodbilling period covered by the highest generation services bill for the purposes of calculating the Required Generation Credit Support Amount shall not be greater than one month28 days and shall be negotiated between the retailer and the generator in accordance with clause 3.2.2 (bb)..
(ba)The multiple in clause 3.2.2 (b) must be calculated in accordance with the following formula:
Multiple = CSD/BP where:
(i) CSD is the credit support duration calculated in accordance with the following formula:
credit support duration = BP + PP + RP where:
(A)BP is the billing period for the highest generation services bill of up to 28 days;
(B)PP is the payment period of up to 14 days; and
(C)RP is the reactive period, which is 14 days or as otherwise specified in guidelines; and
(ii) BP is the billing period of the highest generation services bill of up to 28 days.
(bb)The billing period or payment period (whichever is applicable) in clauses 3.2.2 (b) – (ba) must represent the billing period or payment period as negotiated between the retailer and the generator through honest fair and good faith negotiation and where relevant in accordance with any obligation imposed upon the generator under clause 3.5.
(c)Prior to obtaining generation services and prior to the 15th of December and 15th of June of each year, a retailer must provide the generator with its forecast generation servicesbill for each negotiatedmonth billing period of the following 12 monthperiod, which forecast must be calculated in good faith and,subject to clause 3.2.2(d), will be utilised for the purposes of determining the Required Generation Credit Support Amount under clause 3.2.2(b).
(d)Wherethe retailer has not provided a forecast of its highest generation servicesbill in accordance with clause 3.2.2(b) or (c), the generatormay determine in good faith the highest monthly generation servicesbill for the relevant periodnegotiated billing periodwhich amount will be utilised for the purposes of determining the Required Generation Credit Support Amountfor that period under clause3.2.2(b).
(d)(e)The generatorwill provide the retailer with notice of its determination under clause 3.2.2(d).
(e)(f)Where it is determined that additional credit support is required for any reason,the generatorwill allow the retailer not less than 20 business daysafter advising the retailer of that determination,in which to provide the additional credit support.
3.2.3Where the retailer has provided credit supportfor an amount which is more than 110% of the Required Generation Credit Support Amount, the generator will return the excess credit support to the retailer within 20 business days ofbeing requested to do so in writing by the retailer. Where the form of the credit support provided by the retailer is not readily divisible by the generator, the generatorwill only be obliged to return the excess credit support to the retailer when the retailer has taken all such actions as are necessary to enable the generator to return the excess credit support.
3.2.4Where:
(a)the amount of the credit supportprovided by the retailerisless than 90% of the Required Generation Credit Support Amount; or
(b)the retailer or its parent company have ceased to hold an acceptable credit rating; or
(c)the credit support provided by the retailer has ceased to comply with the requirements of clauses 3.4.1(a), 3.4.1(ab) or 3.4.1(b),
thenthe generator may require a retailer to:
(d)in the case of clause 3.2.4(a), increase the amount of the credit support to an amount not exceeding the Required Generation Credit Support Amount; or
(e)in the case of clause 3.2.4(b) and (c), provide credit supportwhich complies with the requirements of clauses 3.4.1(a), 3.2.4 (ab) or 3.4.1(b) for an amount not exceeding the Required Generation Credit Support Amount,
and the retailer must comply with that requirement within 20 business days of receipt of the generator's request.
3.2.5Ageneratormayonly set off from, applyordrawonthecreditsupport (as the case may be)if:
(a)the generator has given not less than 3business days notice to a retailer that it intends to set off, apply or draw on the credit support in respect of an amount due and payable by the retailer to the generator, and that amount remains outstanding at the end of that period; and
(b)there is no dispute outstanding in relation to the retailer’s liability to pay that amount.
3.3Failure to provide credit support
3.3.1Where the retailer has not provided the credit support required under this Code to the network provider, the network provider is under no obligation to commence providing network services to the retailer.
3.3.2Where the retailer has commenced taking network services from the network provider and has not provided the credit support required under this Code to the network provider, the network providermust notify the Commission, providing all necessary information for the Commission to make a determination as to whether to invoke a Retailer of Last Resort Event.
3.3.3Where the retailer has not provided to the generatorthe credit support required under this Code, the generator is under no obligation to commence providing generation services to the retailer.
3.3.4Where the retailer has commenced taking generation services from the generator and has not provided the credit supportto the generator as and when required under this Code, the generatormust notify the Commission, providing all necessary information for the Commission to make a determination as to whether to invoke a Retailer of Last Resort Event.
3.4Form of credit support
3.4.1The form of the credit support shall be any combination of:
(a)abank guarantee that is:
(i)in favour of the network provider or the generator(whichever is applicable)and is unconditional and callable on demand; and
(ii)issued by a financial institution supervised by the Australian Prudential Regulation Authority;
(ab)a payment by way of cash that is:
(i)made by the retailer;
(ii)deposited into an official bank account as instructed by the network provider or generator (whichever is applicable); and
(iii)acceptable to the network provider or generator (whichever is applicable) and the retailer through honest, fair and good faith negotiation.
(b)an unconditional guarantee or other form of irrevocable credit support that is:
(i)in a form that is acceptable to the network provider or generator (whichever is applicable)at and the retailer through honest, fair and good faith negotiationits sole discretion; and
(ii)issued by an entity with an acceptable credit rating; or
(c)suchother forms of credit support that the network provider or the generator (whichever is applicable)agrees with the retailer as being acceptable through honest, fair and good faith negotiation.
3.5Principles of negotiation
3.5.1Unless the Commission otherwise considers appropriate, this clause 3.5 will apply to Power and Water Corporation (Generation) in respect of any matter under or in connection with this Code including:
(a)credit support requirements; and
(b)the form of credit support,
between Power and Water Corporation (Generation) and a retailer (other than Power and Water Corporation (Retail)) under this clause 3.
3.5.2The generator must:
(a)comply with the negotiation principles in clause 3.5.3; and
(b)no later than the date notified in writing to the generator by the Commission submit to the Commission a negotiation framework which sets out the processes and procedures that the generator intends to adopt for the purpose of complying with the negotiation principles set out in clause 3.5.3.
3.5.3Negotiation principles include:
(a)the generator must negotiate honestly fairly and in good faith terms and conditions relating to credit support;
(b)the generator must provide all information as the retailer may reasonable require to enable the retailer to engage in effective negotiation with the generator in relation to credit support;
(c)the generator must identify and inform the retailer of the reasonable costs and where relevant the increase or decrease in costs of considering alternative credit support requirements including:
(i)lowering or increasing the billing period or payment period (whichever is applicable); and
(ii)on the reasonable request of the retailer alternative forms of credit support,
whichever is applicable,
(d)the generator must use its best endeavours to commence, progress and finalise (whichever is applicable) negotiation of credit support with a retailer; and
(e)such other negotiation principals as specified in guidelines.
3.5.4The negotiation framework must:
(a)sufficiently address all of the matters set out in clause 3.5.3; and
(b)be made publicly available on the generator’s website.
3.5.5If the generator initiates any changes to the negotiation framework then the generator must within 20 business days notify the Commission of all of the proposed changes.
3.5.6The Commission may by written notice to the generator direct any changes to the negotiation framework in which case the generator must comply with such a direction within the timeframe specified by the Commission.
3.5.7The generator must comply with the negotiation framework as submitted to the Commission and as varied from time to time under this clause 3.5.
3.5.8Nothing in the negotiation framework derogates from any obligation imposed upon the generator in clause 3.5.3.
3.6Changes in credit rating
3.6.1A retailer must notify the generator or network provider (whichever is applicable) of any changes to its credit rating immediately on becoming aware of that change.
3.6.2A generator or network provider may obtain relevant credit rating information about a retailer and monitor ongoing changes to the retailer’s credit rating.
(iii).
4Network Access
4.1Network Access Agreement
4.1.1Theretailer and network provider must enter into a Network Access Agreement(consistent with the requirements of theENTPA Act) for the:
(a)provision of network access services; and
(b)the coordination of various matters specified by the Commission in accordance with the network provider'slicenceincluding without limitation, customer billing, fault reporting and notification of interruptions.
4.1.2The network providermust provide network access servicesin relation to the retailer'scustomers as required by the ENTPA Act and the Network Access Agreement.
4.1.3The network provider mustprovide connection servicesas required by the ENTPA Actand the Network Access Agreementfor the premises of each of the retailer'scustomers:
(a)who requests those connection services; and
(b)whose premises are connected, or who is seeking to have those premises connected, to the network provider’s electricity network; and
(c)who has entered into an electricity supplycontract with that retailer.
5Metrology
5.1Requirement for interval metering
5.1.1A retailer must not initiate a transfer unless the customer’s exit point has an interval meter installed. For the avoidance of doubt, a customer with an accumulation meteror unmetered installations may not be transferred to another retailer.
5.1.2The interval metermay be either manually or remotely read by the network provider.
5.1.3To the extent applicable, retailers and network providers must comply with the meter and meterdata arrangements outlined in the Network Connection Technical Code.
5.1.4Aretailer must not initiate a transferof a customer, if that customer'spremises areconnected to and supplied with electricity from an embedded network.
6Market Data
6.1Use of market data
6.1.1In marketingto a customer, a retailer must comply with all applicable laws and codes (including without limitation, the Privacy Act 1988 (Cth) and the Competition and Consumer Act 2010 (Cth)).
6.1.2A retailer must only use data for the following purposes:
(a)to provide the customer with a quotation for the supplyof electricity by the retailer; and/or
(b)to initiate a transfer in relation to that customer.
6.2Market data procedures
6.2.1If under this Code a retailer or network provider sends a communication electronically, the retailerand network provider must first notify and confirm each other’s electronic communication address(es).